Territorial Tax System — Georgia
Georgia applies territorial tax principle for individuals — this is the country's key advantage. Tax residents pay 20% tax only on Georgian-source income. Foreign income (dividends, interest, cryptocurrency, salary from foreign companies) is not taxed. Makes Georgia ideal for digital nomads and international investors.
Territorial Tax System
Georgia applies territorial tax principle for individuals — this is the country's key advantage. Tax residents pay 20% tax only on Georgian-source income. Foreign income (dividends, interest, cryptocurrency, salary from foreign companies) is not taxed. Makes Georgia ideal for digital nomads and international investors.
Flat 20% Rate
All salaries and employment income in Georgia taxed at 20%. Employer withholds tax monthly. Simple calculation: salary × 20%. No progressive brackets.
Individual entrepreneurs pay 20% on net profit (income minus expenses). Can choose small business status and pay 1% on turnover up to 500,000 lari.
Residential property rental: 5% on income when registered with tax service. Commercial property rental: 20% on net profit. Very favorable for landlords.
Territorial principle: foreign-source income is not taxed for individual residents. Working remotely for foreign companies — no tax.
Capital Income
Low 5% rate on dividends from Georgian and foreign companies. This is final tax. One of the lowest rates in the region. Efficient for investors.
Crypto trading for individuals completely tax-exempt. Not considered Georgian income. Georgia is crypto haven. For companies — 15% upon distribution.
Interest income from Georgian sources taxed at 5%. Interest from foreign banks for individuals not taxed due to territorial principle.
Real Estate
Selling property after 2 years ownership completely exempt from profit tax. Stimulates long-term real estate investments.
Selling property before 2 years ownership, profit taxed at 5%. Profit = sale price minus purchase price.
Property owners pay up to 1% of market value annually. Houses up to 200 sq.m and land up to 5,000 sq.m exempt. One of the lowest property taxes.
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Small Business Status (1% Tax)
One of Georgia's main advantages — small business status with just 1% tax on turnover. Available to individual entrepreneurs with annual turnover up to 500,000 lari (~$165,000). When limit exceeded, rate increases to 3%. No complex reports, simple system. Ideal for freelancers, consultants, digital nomads.
03Cryptocurrency: Tax Haven (0% Tax)
Georgia is one of the world's best crypto havens. Individual income from crypto trading completely tax-exempt. Ministry of Finance officially confirmed: cryptocurrency not tied to geographical location, so not considered Georgian income. Applies to buying, selling, exchanging, holding. Crypto mining also developed thanks to cheap electricity.
04Tax Calculation Example
Consider two scenarios: employee and freelancer with small business status. Georgia has no social contributions, so effective tax burden is lower than in most European countries. Simple and transparent system.
05Digital Nomad Visa
Georgia offers 'Remotely from Georgia' program for remote workers, plus visa-free access for citizens of 95+ countries for 365 days. Low cost of living, visa-free regime, territorial taxation make Georgia top destination for digital nomads. Tbilisi and Batumi are community hubs.
06Estonian Corporate Tax Model
Since 2017 Georgia applies Estonian corporate tax model: undistributed company profits taxed at 0%, tax of 15% charged only upon dividend distribution. This stimulates reinvestment and business growth. One of most competitive systems in region.